US embassy cable - 03LAGOS2153

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NIGERIA: FROM THE ASHES OF NIGERIA AIRWAYS

Identifier: 03LAGOS2153
Wikileaks: View 03LAGOS2153 at Wikileaks.org
Origin: Consulate Lagos
Created: 2003-10-20 15:49:00
Classification: UNCLASSIFIED
Tags: EAIR ECON NI
Redacted: This cable was not redacted by Wikileaks.
This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS LAGOS 002153 
 
SIPDIS 
 
 
STATE PASS DOT FOR SAMPLE 
 
 
E.O. 12958: N/A 
TAGS: EAIR, ECON, NI 
SUBJECT: NIGERIA: FROM THE ASHES OF NIGERIA AIRWAYS 
 
REF: (A) LAGOS 1690, (B) LAGOS 1768 
 
 
1. (U) The liquidation of Nigeria's ailing national 
carrier, Nigeria Airways Limited, may at last be moving 
forward.  According to Bismarck Rewane, Managing 
Director of Financial Derivatives Company Limited, a 
leading Lagos-based economic think tank, the Ministry 
of Justice has begun making preparations to liquidate 
the airline.  While Nigeria Airways may survive as a 
legal entity for years, the Ministry has declared its 
intent to sell the carrier's assets and settle its 
debts. 
 
 
2. (U) Rewane tells us a new national carrier will take 
Nigeria Airways' place.  He expects an established 
international airline to hold 30 percent of the new 
carrier, with core investors holding 20 percent and 
individual shareholders picking up the remaining 50 
percent through an initial public offering.  As the 
largest single shareholder, the international carrier 
would control the airline's management. 
 
 
3. (U) With other members of the technical committee 
advising the Ministry of Aviation on the creation of a 
new airline, Rewane recommended that the carrier 
restrict its operations (both passenger and cargo) to 
West Africa and join an international alliance to take 
advantage of the routes allocated to Nigeria Airways 
under the GON's existing bilateral air services 
agreements.  Rewane tells us, however, that despite the 
committee's recommendations, the new airline may 
operate point-to-point services to Dubai, Saudi Arabia, 
London, Johannesburg and New York. 
 
 
4. (U) Comment: If the GON implements the committee's 
recommendations - and if reliable international 
carriers, core investors and individuals express 
interest in holding shares in the new airline - then 
the new carrier stands a good chance of getting off the 
ground.  Of three names under discussion, Nigerian 
Eagle Airlines is most popular.  Given the airline's 
emergence from the ashes of its predecessor, however, 
Nigerian Phoenix Airlines might be more appropriate. 
End comment. 
 
 
GREGOIRE 

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